A forprofit nursing home has beginningofperiod equity of 400

A for-profit nursing home has beginning-of-period equity of $40,000. Net income for the period totals $75,000 and dividends declared during the period total $15,000. The balance sheet total for equity at end-of-period will be what amount?
Choose one answer.
A. $100,000
B. $ 90,000
C. $ 75,000
D. $130,000
E. none of the above

Solution

equity at end of period = beginning of period equity - dividends + net income = 40000 - 15000 + 75000 = 100000 Answer is A